Market Insights

Principal Life Insurance Makes Q3 Mark on East Coast, Chicago

 

As we noted in our Q2 Lending Spotlight, insurance companies have been conspicuously absent from the top 10 list of commercial real estate lenders in New York City this year, though they have maintained a prominent role in the Boston and Chicago markets ‒  a trend that looks to have continued in Q3.

That’s not to say insurers took the summer off in the Big Apple, however.

Prudential, which was a top 10 NYC originator in Q2 2016, issued first and second mortgages of $18 million and $16 million, respectively, for 241 Central Park West. The loans to refinance the Upper West Side multi-family property were recorded on August 29.

Meanwhile, down in the Village, Principal Life Insurance provided a June $28 million first-mortgage construction loan for a 58,000 square foot office building at 57 E. 11th St. The Greenwich Village property, built in 1903, is undergoing a complete renovation.

Des Moines, Iowa-based Principal Life kept itself busy outside NYC, as well.

Still on the East Coast, over in Boston’s Financial District, Principal Life financed $42 million of debt in June for 50 Congress St., a 188,000 sq.-ft, office property with large floor plates of nearly 19,000 sq.-ft. per floor, which appeal to a wide variety of possible tenants.

Closer to home, in Chicago, Principal Life, on September 5, provided a $23.5 million construction loan on 1970 N. Milwaukee Ave. in Chicago, crossed with the adjacent 1980 Milwaukee Ave.The historic property, known as the Weyland Building, was going to be demolished in the development of a planned multi-family development, but will now be incorporated into the new design.

A few days earlier, on September 1, Principal issued a $55 million acquisition loan for a 605,000 sq.-ft. retail center at 237 Skokie Blvd. in the affluent Chicago suburb of Northfield.

With a summer like that, it wouldn’t be a surprise to find Principal Life up there on our list of Q3 leaders.

To download the entire NYC Lending Spotlight for Q2 2017, click here.

 

 

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